Finding the best and most profitable places to invest in real estate is no easy feat in the current cutthroat industry. Thankfully, resources providing tips and tricks for real estate investing are becoming more and more plentiful. Moreover, suggestions about tips and tricks are more available. It’s possible to get advice on how and where to get started quickly.
This article aims to introduce you to the basics of real estate investing and point out some of the best real estate investment locations globally. Without further ado, let us begin the journey towards becoming a real estate investment pro!
How does Investing in Real Estate Work?
Well, investing in real estate is a relatively simple process. First, you need to identify the perfect investment opportunity for your budget and preferences. Next, decide what you’re planning to do with your targeted property. Are you planning on flipping the property, living in it, or renting it?
Once you’ve made those decisions, invest and reap the rewards. Many types of investments exist, as well as many properties. If you want to learn more about the real estate investment process, continue reading. We will inform you how successfully you can invest in the best real estate places.
Is Investing in Real Estate Safe and Profitable?
Onto the point, no real estate investment is safe or profitable. However, as is the case in all walks of life, investing in the right way and selecting suitable options can be safe and gainful.
There are several risks that you should avoid. Less than ideal locations, high vacancy numbers, problematic tenants, and negative financial balances of realtors are all tangible dangers. Additionally, hidden construction issues and lack of liquidity are problems.
At least in most cases, you can expect your property to appreciate over time. However, that doesn’t mean that the real estate market is always stable. Choosing the wrong investment in the wrong place could lead to disaster.
How Important is Your Location to Real Estate Investments?
No doubt that most realtors will repeat three words to you religiously. Location, location, location! The value of a property depends on multiple factors, but the site is the most important one.
When exploring locations, keep in mind that properties in cities with no space to expand will always be more expensive than other property types in different areas. Other factors you should think about are appearance, convenience, accessibility, and access to job and leisure epicenters.
When it comes to buying land, acreage is more important than the house itself. Land continually increases in value, while homes depreciate as their condition deteriorates.
Here are some important considerations for you to think about when looking for the best places to invest in real estate and which are the most profitable.
- Neighborhood – Choosing the right area for your property is critical. Identify crime rates, school districts, and nearby amenities.
- Centrality – A downtown location in any city tends to be more valuable. Job opportunities, shopping districts, restaurants, cinemas, and more are usually in city centers.
- Lot location – Where your property is located in a neighborhood is also important. Near a highway? You can bargain. Near a lovely lake? You’ll probably pay more.
- Future developments – Keeping an eye on your potential location future could lead to significant profit. Keep track of any future schools, hospitals, malls, or churches. You can either ask the community or recognize it through under-construction.
- The property itself – The more appealing and well-built home is, the more it is worth. Depreciation will also be slower. Always check for structural flaws because they can be disastrous.
What Type of Real Estate Investment has the Highest ROI?
While all sorts of investments can make you rich, some methods are significantly more effective and proven than others. Here are some important options that seem to have the highest Return on Investment (ROI):
- Long-term Field Investment – Investing in future-valued real estate is a low-risk option. Every year, cities expand by around 10 kilometers. So buying land on the outskirts of cities is always an excellent way to guarantee ROI.
- Medium-term Land Investment – Residential land is often a good investment option because housing demand exceeds supply. With the constant need for more homes, it’s easy to sell and gain value. Your medium-term investment will also gain value as the plots surrounding these properties become more desirable.
- Short-term Residential Investment – Short-term residential investments are popular for many reasons. Urban rents are high, and land and construction costs are rising. Investing in residential properties for the short term could provide an outstanding income. Or, you could wait a few years to sell for a more successful ROI.
- Commercial Real Estate for Rental Income Investment – Like residential real estate, you can choose a commercial investment that grows in value year after year and pays a rental return. This investment requires the renter to keep the house clean and functional. If you can wait for an ROI, the rental income can be higher than the purchase price. Those with large corporate tenants will benefit the most from such investments.
21 Best Places to Invest in Real Estate in 2022: A Geographical Layout
1. New York City, New York, USA
The Big Apple’s recovery from the Covid-19 pandemic is going along swimmingly. Almost incredibly, the third quarter of 2021 has seen the most significant jump in real estate sales in the past 32 years!
Selling people on the perks of life in New York is easy. Some of the most profitable investments anywhere are found in the most populous city in the US. However, looking at the numbers, it’s clear that 2022 will be an active year in New York’s real estate markets. Apartments sales are triple what they were in all of 2020, even though it’s only the third quarter of 2021. Four thousand five hundred twenty-three sales in Manhattan were more than the record set in 2007. How about New York’s prestigious universities, museums, vibrant nightlife, stadiums, and concerts arenas on every corner?
If New York isn’t an option, there are genuinely 20 more exciting real estate places on the globe to live and invest!
2. Dallas, Texas, USA
Big D, as it is known in Northern Texas, is the industry’s, historic heart. Cotton and oil industries influenced the city’s population growth to 7th in the country. It wasn’t until a half-decade ago that it became a real estate hotspot. Five years ago, corporations from Los Angeles and San Francisco chose Dallas. For the same reasons, you should consider investing in Dallas real estate. Business costs are lower, taxes are lower, business regulations are less strict, and living costs are lower. But wait… Unlike most US business hubs, there is still affordable real estate available. The fact that 2021 home prices are 35% lower than the national average bodes well for 2022.
3. Bogota, Colombia
Venture capital investments in Latin America have increased by over 100% annually since 2016. Pre-pandemic, around $5 billion in venture capital investments in 2019-2020 were the highest levels ever seen in the area. Without a doubt, the economy of Bogota is diverse and vibrant, making it Colombia’s economic hub. Everyone comes to the city for business deals, new markets, and international and political activities.
The city’s GDP in 2019 was $102,05 billion, and 31.5 percent of Colombia’s total, dwarfing economies like Panama and Costa Rica. Bogota’s GDP growth inevitably outpaces countries like Panama and Costa Rica. That is due to Bogota’s convenient location.
Moreover, this statistic reflects its diverse population, industry, and investment choices. Bogota’s economy has become more global. As a result, Businesses now have access to previously closed markets thanks to free trade agreements. These create over $51 trillion in new market opportunities!
4. Sacramento, California, USA
California’s capital has an estimated GDP per capita of $47,047 and is one of the best places to invest in real estate as it offers plenty of investment opportunities! In fact, Sacramento is so appealing to buyers that home prices are expected to rise by up to 3% by 2022. House flipping and property rental are both lucrative business opportunities in the city.
When it comes to rental properties, homeowners who rent out their properties earn around 20,000$ per year. The market in terms of buyers and sellers appears to be fairly even, which is unusual in most parts of the world. Predictions for 2022, on the other hand, show a significant increase in the number of buyers. Take advantage of the opportunity while the competition isn’t as fierce.
5. San Miguel de Allende, Mexico
This hidden Mexican paradise is the undiscovered real estate opportunity on this list. Unaware of the growing Mini-Barcelona in Guanajuato State? Check it out! You might find a piece of real estate with incredible potential. Investing in San Miguel de Allende has the advantage of not trending, which means housing prices are still affordable, unlike many surrounding areas. If you can wait a few years to invest in San Miguel de Allende, you could make a fortune!
6. Montreal, Quebec, Canada
Real estate markets across Canada felt the effects of the pandemic, with major cities such as Toronto experiencing historic population losses during its peak. That resulted because of a large number of people working from home during the outbreak. As a result, demand in the suburbs is skyrocketing. That also resulted in even higher prices as buyers rushed to take advantage of the ever-dwindling supply.
CREA and GMREB, two of Canada’s leading real estate websites, predict a surge in Montreal sales. In Montreal, both sales and home prices are increasing. Since 2019, there has been a consistent year-on-year increase. Aside from the city’s allure as a party and economic hub, pending tax reforms encourage investment in Montreal. The success of Montreal in the Canadian real estate market can be attributed primarily to its consistent, low-cost properties. Real estate in Montreal is more affordable than in other major Canadian cities such as Toronto and Vancouver.
7. Windsor, Ontario, Canada
A strange occurrence in Windsor, Ontario, should pique your interest. In Windsor, sellers are getting the most profit over selling prices in the whole country. That’s amazing, and a phenomenon worth investigating. Until someone figures out how and why this is happening, you might want to jump at the opportunity of short-term investments in Windsor. This quaint city is beautiful, peaceful, and safe, making it one of the best places to invest in real estate, regardless of this strange phenomenon.
8. Edinburgh, Scotland
Edinburgh has been growing as a real estate hotspot for the best part of the last decade. In terms of being one of the most profitable real estate investments you can make in Europe, it’s hard to go wrong with acquiring property in Scotland’s capital.
Apart from the medieval beauty and charm that the city has, rental yields stand at an impressive 5.35% on average. Additionally, the prices of properties in Edinburgh have risen by 17,65% in the past five years. That indicates the great potential that one of Great Britain’s gems has when investing in real estate.
The Scottish properties market is more stable, with low turnover rates among tenants than most. Predictions indicate that Edinburgh has the third-fastest economic growth rate in all the UK. According to the experts, this trend will likely continue for the next five years. That can only bode well for the real estate industry.
9. Birmingham, England
You might expect to find London, Manchester, or Liverpool on most lists dealing with the UK’s most profitable and best places to invest in real estate. However, Birmingham has been taking the British real estate industry by storm since 2016, which is why we’re including the UK’s second-largest city on our list.
Birmingham and its metropolitan area are huge, with around 3.6 million people calling it home. Therefore, the demand for real estate is insane. The UK government has put into action the Big City Plan, which will look to revolutionize Birmingham in the space of 20 years. This ambition is why experts are foreseeing the city noting significant growth in the next half-decade. By 2025, prices in Birmingham may rise as much as 24%. Get in on the real estate action now because properties in the city and its suburbs are still reasonably affordable.
10. Poitiers, France
Just a glance at Poitiers will send you back to the middle ages when the English and French did battle outside its gates during the Hundred Years’ War. Gorgeous architecture intertwined with towering castle walls make this quaint little town a real estate heaven, particularly post-pandemic.
After decades of gradual price jumps, prices have dropped by 1,7% in 2021. Now that the world is slowly but surely going back to normal, interest will be piquing again, both domestic and foreign. Therefore, jumping on an opportunity to acquire property in the second-best city to live in France, according to L’Express, could net you a nifty profit down the line.
11. Braga, Portugal
If a mountain city with incredible vistas, sprawling Baroque palaces, and ancient architecture is what you’re looking for, Braga is perfect for you. The ideal mixture of modern life, rich culture, and authentic aesthetic grace define the oldest city in Portugal.
All sorts of properties are available in the city, from affordable to luxury options. Additionally, the Portuguese government offers the so-called Golden Visa. It’s possible to get a residence permit and reap all sorts of benefits through the Golden Visa program. One of several ways you can get one investing in real estate. While investment options in the city can be lucrative, Braga is the sort of place to find your dream home.
12. Alicante, Spain
There is no better time to invest in Spanish real estate than right now, with prices expected to continue their downward trend through 2022. With drops from 4% to 6% predicted, finding the right opportunity could lead to massive Return-on-Investment. Why settle for anything less than Alicante when there are so many other options to choose from?
Alicante, aka ‘city of lights, is a favorite destination for international home purchasers and eventually, one of the best real estate places to invest in. Palm tree boulevards, magnificent beaches, and pleasant temperatures year-round, what’s not to like?
An excellent combination of modern and traditional elements is too tempting to ignore in the Southeastern corner of Spain. More than 15% of the population is foreign, and many of them live in the Costa Blanca region, which consists of 200 kilometers of sandy beaches and secret coves.
Foreign investors, particularly from the UK, are already descending on Alicante, but plenty of properties await. Stunning villas, beachfront homes, office space, and other commercial and residential properties are available.
13. Accra, Ghana
Massive demand for new developments exists in the group of Africa’s most stable countries and economies. Ghana has been able to prosper thanks to a lack of internal conflict in the country. As a result, Accra became one of the continent’s financial trading hubs. When it comes to real estate opportunities, investing in developing properties could net you extraordinary profits.
Accra is a city of more than 4 million people, which needs approximately 150,000 new residential units a year. Currently, barely 50,000 a year are under construction. The gap in the market is there for anybody to take advantage of, so why shouldn’t it be you?
Additionally, commercial space is also in short supply. With business booming and foreign companies flocking to one of Africa’s most desirable locations, there has never been a better time to invest in Accra real estate.
14. Marrakech, Morocco
The Maghreb region in Africa offers a “Mélange” of cultures, spicing the traditional way of life up with both European and more oriental influences. Marrakech is a perfect example. The jewel in Morrocco’s crown blends traditional and 21st century living like no other place on Earth. Therefore, it’s not surprising at all that it is an in-demand real estate hub.
Morocco has been experiencing an economic renaissance in recent years. This financial boom has brought droves of both real estate developers and investors. Moreover, options for acquiring real estate are becoming more affordable and appealing. Marrakech holds a world of possibilities, with an annual economic growth rate of 6% and a stable real estate market. The Gueliz and Hivernage neighborhoods, in particular, are worth highlighting for those with bigger budgets.
15. Singapore, Southeast Asia
When looking for the best real estate places to invest, one of the primary concerns is how safe the market you plan to enter is. The World Economic Forum is the supreme authority on the matter. Singapore’s economy is ranked by the World Economic Forum as the most open, pro-business, and third-least corrupt worldwide.
Thanks to such ideal market conditions, the real estate industry thrives in one of Asia’s most prominent financial hubs. The third quarter of 2021 bodes very well for real estate trends in Singapore. The number of total investment sales grew by 23%, which is an astounding $7.2 billion more than the second quarter of 2021. The perfect mixture of affordability, demand, and supply will make Singapore one of the top locations to invest in when 2022 rolls around.
16. Kyoto, Japan
Kyoto is one of the most unique cities on the face of the Earth. Its mysterious shrines and temples, peaceful gardens, and unshakable atmosphere completely embody the essence of Japanese culture. However, industry and business are thriving in the ultra-modern city center. Therefore, foreign and domestic investors are looking to invest in Japan’s cultural heartland.
More than 3.8 million people call the Greater Kyoto metropolitan area home. Consequently, the real estate supply can never keep up with the demand, keeping prices high and on an upward trajectory. While finding an affordable dream home may be problematic without a hefty budget, both rent and investment industries thrive in Kyoto. Some of the most profitable real estate investments in all of Asia await.
17. Shanghai, China
After overtaking Hong Kong, Shanghai is now the most expensive city in the world and, therefore, one of the best places to invest in real estate. Prices are exorbitant, both for buying and renting properties. Prices in the city center are better than in metropolises such as New York, Paris or London.
To keep up with rapidly-growing demand, Shanghai’s realtors provide a wide array of properties. That ranges from sprawling mansions and stylish villas to affordable condos and studios in the city.
Since December of 2019, housing prices in the city have been rising. A vast real estate bubble is blowing up, worrying the government fearing the bubble’s collapse, but opens a world of opportunities for investors.
When it comes to domestic investors from China, they love investing in real estate. More than 70% of household wealth in the world’s most populous country goes into real estate investments. It’s the safest possible investment in these uncertain times, meaning that the Shanghai real estate boom will continue.
18. Ho Chi Minh City, Vietnam
Ho Chi Minh City is one of Asia’s most brilliant and undiscovered cultural gems. To visualize Vietnam, many imagine quaint villages and towns surrounded by rice paddies and lush forests. Far from it, Ho Chi Minh City. The Vietnamese capital is a true metropolis. Skyscrapers dot its skyline, while freeways meander through the countryside, leaving a distinct mix of old and new.
Vietnam is experiencing significant expansion in infrastructure, banking, and real estate investment. That is all a result of a rapidly developing economy and a digitally native youthful population with a median age of 25-30.
With a 12 percent return on investment, Vietnam is one of the best real estate markets. Southeast Asian nations like Singapore and Vietnam have averaged 3% returns, with Singapore leading the way. It’s also cheaper than nearby Singapore and Bangkok. One can buy luxury property for USD 3000 per square meter. However, Bangkok is double or triple the price. Assume you want low-cost, high-return options. If so, Ho Chi Minh City may be the best place to invest.
19. Jakarta, Indonesia
With nearly 274 million people, Indonesia has an ever-growing need for real estate. That means that investment options are popping up on every corner, and thousands are looking to take advantage of the relatively affordable prices before they explode in cities such as Jakarta.
The Jakarta metropolitan area estimates more than 35 million people. With it being the smallest province in Indonesia, you can only imagine what kind of squeeze it is to find any property, let alone the perfect one. However, with yearly GDP growth of more than 5% and PPI (Property Price Index) jumping by 1.77%, it’s hard not to find intrigue in the possibilities.
As you might already know, the best places to invest in real estate are crowded markets. Despite demand outstripping supply, Jakarta has potential. However, you may wonder, where do we see this potential? The Indonesian government supports the real estate industry with an $8 billion stimulus package that includes subsidized housing. In addition, investors should note that rental returns in Jakarta range from 5.2 to 7.7%.
20. Bonogin, Australia
According to some of the most reputable realtors in Australia, such as John McGrath, investing in Bonogin, Australia in 2022 could be the lowest-risk, highest-reward investment you ever make.
With the Covid-19 pandemic forcing everyone to rethink their lifestyles, Queensland has soared in popularity. Thousands are drawn to the idyllic weather and beautiful yet affordable real estate. Prices are already rising due to the influx of investors from Melbourne, Sydney, Canberra, and other Australian cities.
Predictions for one of the Golden Coasts’ hidden jewels indicate that annual property prices in Bonogin could rise as much as 12% in 2022. With the Brisbane Olympics announcement, though, not only will locals be fighting for properties, but foreign investors will too. Investing before this boom in demand occurs, both in residential, commercial, and rental properties, will hopefully enable you to make a killing.
21. Sunshine Coast, Australia
The Sunshine Coast is a bit of a cheat as it is a peri-urban area. It runs from Noosa to Caloundra in Queensland, about 100 km north of Brisbane. Finding a location that caters to a specific demographic is now prudent when looking for profitable real estate investments. You’ve struck gold when you find a location that appeals to multiple demographics.
The Sunshine Coast gorgeous vistas and beachfront properties, from Coolum to Peregian Beach, are sought after by retirees and investors looking for luxury retreats. Besides, a young, urban demographic looking to get away from the cities keeps rental property prices high. On average, places such a Sunshine Beach, Yaroomba, Warana, and others will see a rise in capital growth between 5%-7% in 2022. The economy of the whole Sunshine Coast is growing 4% per annum, new industries such as a health precinct worth $5 billion are popping up, all providing ideal investment conditions. What are you waiting for? Start investing today!